TDS u/s 194DA has been deducted by ICICI Prudential Life Insurance. Whether the insurance policy maturity proceeds will be included in the income of the assessee? Please advise.
SSG
(1936 Points)
Replied 12 July 2017
How much income is to be added from the maturity proceeds of the insurance policy? As per 26AS, the amount credited is Rs. 126696 while the TDS is Rs. 2534.00. Is there any exemption if the assessee is a senior citizen?
SSG
(1936 Points)
Replied 16 July 2017
Under which sec. maturity proceeds of insurance policy will be taxed?
It is not specifically mentioned in income definition. However, under exemption provisions, only specified policies are exempt. And, other policies are subject to TDS. If all policies were outside the scope of income tax then there would not be a reason for writing it u/s 10 and taxing others at the source.
So this is inferred that the proceeds from policies (other than exempted policies) are incomes subject to income tax.
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